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Mad Money

News/Business. Money manager Jim Cramer discusses Wall Street investments.

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Macy 15, Jim 9, Washington 8, Boone 6, Us 5, John Harwood 3, Cramer 3, Triquint 3, Palm 3, Bertha 2, Chevy Malibu 2, New York 2, Kohl 's 2, Terry Lundgren 2, Nike 2, Jim Cramer 2, Brian Schachtman 1, Melissa Francis 1, Ben Bernanke 1, Trish Regan 1,
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  CNBC    Mad Money    News/Business. Money manager Jim  
   Cramer discusses Wall Street investments.  

    February 25, 2010
    12:00 - 12:29pm EST  

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talking earlier about what states do. a lot of states already do it. this, by the way, goes to the other difference that we have when it comes to interstate purchase of insurance. actually, this is a republican idea, been championed by the republicans. we actually agree with the idea that maybe if you get more regional markets and national markets as opposed to just state by state markets, you might get more choice and competition. people would be able to say, gosh, there's a great insurance company in nevada, and i live in new york, maybe i can purchase it. that's actually something that we find attractive. so do you guys, but again, the one difference, as i understand it and the reason you're not supporting the approach that we take is what we say is there should be sort of a minimum baseline benefit because if not, what ends up happening is -- >> pretty interesting back and forth there. that is it for "the call." i'm melissa francis.
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>> i'm trish regan. "mad money high noon" with jim cramer is up next. pardon the interruption, mr. president, but it is high noon on an ugly day, so we have to figure out what the next move is. there's a lot going on today, health care summit which we're watching for you. we'll bring you the latest, ben bernanke, et cetera, okay, bears have had such an edge today. you've got to admit it, right? don't they? greece could be in trouble. germany's so tentative, spain's next, jobless claims are terrible. strong dollar. you can only imagine then with that parade of horribles, how hobbled the consumer is, can't be buying right? no wonder we're down so much. then all of a sudden the facts get in the way of the story. look, i want to be bearish in all this news. i want to join my buddies and pals, friends, yogi, boo-boo, baloo and smoky, but then we get
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coal saying things are getting better and not just because of the two shirts and buy two get one free purchase of kohl's brand socks, the house brand, i made this four weeks ago, can you tell the difference in that quarter was amazing. it's every bit as good as saks' and macy's. then autoparts makers saying auto sales are coming back strong. it is up moving better than $1. can you imagine how much market share ford must be taken as its format seemed darn good even on a snowy day and good old prindel, that's neutral drive and low is working just fine. makes me wonder s it prindal's accelerated drive if for me it's ford-ds and that's the symbol for the ford preferred that i like so much. kohl's, saks, and macy's and trw and magna said things that are terrible because greece is the
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word and jobless claims look bad then i can join the players in the constellation. how about oil? down two smackers. we've known for weeks that lower oil's bad for the stock market. the stock futures go down huge when futures traders see oil plummet. i'm puzzled. i always equate oil going down with lower gasoline prices, and i am still convinced, despite the insistence of the futures traders that lower gasoline's good for the consumer. man, i must be old school, perhaps because i drive. so i come back and say yes, the higher jobless claims could, indeed be connected with the president's decision to debate health care for at least the next decade or two. it is harder for employers to gain how much a new employee would cost given the travesty of endless congressional wrangling. my bad for knowing how it really works although admittedly to some people a spike of 20,000 jobless claims is merely around
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it. i'm just stuck thinking that this could be a profit taking moment, no more. no doubt accelerated by washington's refusal to shut down. so maybe i blame the snow front for missing the nation's capi l capital. i am stuck believing the grecian formula may be better than the formula. i refuse to panic. my fault for letting those darn facts cloud my judgment that i should join those salmon-grabbing bears at the mackenzie river, rather than hanging out, chewing grass like the steers my family owns in western jersey. we have bernanke and the health care and see how it's impacting the market itself. brian schachtman is at the nyse. is it snowing inside as well as outside. >> i had to go outside briefly so i did get hit a little bit. your point is a really good one. i just want to want to say to people the dollar against the euro was the first leg down. the jobless claims was the second leg down. to your point it confirms it's a
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stock picker's market which makes your role more important. i want to share with people some of the details of trw. they beat by 65 cents and their revenue better by 170 million. their q-1 guidance 500 million better than the consensus. either the analysts are hanging in the cayman's too much or they're hitting it out of the park. you talked about kohl's. the one thing i want to throw at you is newmont. they came out with great numbers and made a penny this year and this time it's $1.13 a share and every other metal's down and it's boosting other metal stock, human a gold fields are bucking the trend. other names like nike and hyatt bucking the trend. nike with goldman sachs and hyatt and we're talking about the global story better so you can find, no pun intended some, gold here. >> thank you, brian. two points to make we had sean boyd on yesterday, another gold stock and the ritz carlton is
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great at the cayman islands. we have a lot of traders watching show the. thank you, brian. >> let's head over to the nasdaq with bertha coombs. what's going on down there, bertha? >> jim, i'm reminded by what my mother always says, people will judge you by your friends. palm, they're so busy blasting one another, certainly not boosting palm and you come to the times square station here and they have a huge advertising campaign because they can't sell phones down 13% today and they come off of their lows. the street got this one right. we had three downgrades on tuesday and another one ahead of the call this morning, triquint on the other hand has pretty good friends, one of them being apple. they put in a nice quarter and even after revising upwards back in january. they even beat that number and they say already they're at the midpoint of their high guidance for their revenues in the first quarter. they picked the right horse or at least the right horse picked them in terms of putting them in their phones. the other winners today, jim,
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seem to be the guys in pharma. a few names along with triquint going to all-time highs in a down market. one of theks express scripts, with the pbn. their numbers are doing well and their net rx acquisition will make things better. mylan labs, generic doing very well. they're naming a new cfo, john sheehan. impacts labs also in generics today. >> thank you, bertha. >> express scripts, triquint showing that the tsunami of cell phones very, very on. palm is the planet of no apps. thank you so much, bertha. all right. we're still monitoring this endless health care summit and now i want to check in with john harwood in washington. john, is this thing going and on making people wonder whether they're spending nine times as much time on health care as we are on creating jobs? >> jim, first of all, i'm glad that the nor'easter skipped washington, i don't know about you, but the health care summit
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so far has resolved very quickly one of the questions we have. is this going to be an actual place where they make a bipartisan deal or not? it is not. this is a recitation by both sides of talking points. the republicans why they oppose what the administration's trying to do, the president and democratic leaders in congress explaining why they want to do what they're doing and once this thing is over, jim, it will be about counting votes and democrats seeing -- >> one second. >> i have to interrupt you. >> once that happens, you'll see them talk about jobs nonstop. >> i have to interrupt you. you used a phrase that is patently false. once this thing is over. is that really going to end? >> it is going to end? >> it's going to end by the end of the year -- by the end of the day, sorry. >> that may have been the freudian slip that gets it. >> is there a better feeling at least? i don't see republicans throwing snowballs at democrats, but could that be the storm that did miss washington? >> well, that's some of it, but everyone's trying to be on their best behavior. they're sitting in a room with
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the president of the united states and talking respectfully with each other. there's nothing low-toned about this, it's a high-tone discussion, but it's a discussion with people who have very different ideas of what the problem is in the country and what the solution should be. >> i have a question about your reportage, you have the health care summit and how do you decide what is the focus? >> i let liesman and hampton pearson and i'm sticking with the guys trying to resolve health care. >> john harwood, that's why you're terrific. i appreciate you coming on "high noon mad money." >> up next we have clean energy fuel ceo nat gas play. "mad money high noon" will be right back. coming up on "high noon," fill her up? cars running on natural gas, just a pipe dream? cramer going one-on-one with nat gas ceo to find out. later, retail returns this stock's been red hot. will consumer spending dress
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this sector for success or leave it hanging by a thread in cramer's exclusive with macy's ceo terry lundgren all coming up on "mad money high noon." honda accord and toyota camry stand behind their powertrain for up to 60,000 miles. chevy malibu stands behind theirs for up to 100,000 miles.
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we'll talk energy in just a moment, but first let's do some tape reading. that's the key to the nasdaq and going absolutely nowhere. microsoft, you know this stock is almost back to where it was when it reported a better than expected quarter. i slammed fuel systems last night and said it could be bottoming, so i feel better about that right now. i have to tell you, we're seeing the dollar tree, this is remarkable. a stock up six points. to find out how natural gas is faring in washington, i want to bring on andrew littlefair, ceo of clean energy fuel, clre, the chain that's been a regular for mad money viewers. welcome back to "mad money." thanks for having me on high noon. >> let's talk about the fact that there's a lot of money on the line, not just for the country and your company, but for me and boone pick ins. >> when boone was on last he bet me 100 bucks that by memorial day we would see some action perhaps the passes of a key
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natural gas act that would make your company be on fire. >> jim, i was with boone yesterday in washington, and i want to tell you about that, but he wanted me to make sure, tell cramer i'm ready to press him on the bet. we feel better about it now than we have in a long time. >> but you can't. we have a health care summit and that doesn't end until maybe baseball season. >> you know what's interesting, jim, yesterday boone and i were off the floor of the house where we met 27 members who came out to hear about the nat gas act and several signed on as co-sponsors. listen to this one, we met with minority leader boehner. he's heard about it, and he said, boone, i get it. we get it. our caucus gets it and we're ready to act on it upon. so i think you're right, jim. we're in the bull pen behind health care and a couple of these other things, but there are more pathways today on natural gas. we met about ten days ago with john kerrie and lieberman on
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this and they want natural gas for transportation in their bill. so you have a lot of pieces at work. you have the majority leader senator reid who wants to bring this forward to a vote as a stand alone bill which has difficulties with it, but there's a lot of people working right now to try to push this forward. >> i was going to go double or nothing on the bet and maybe i'll hold off for now. i do try to explain to viewers that without this natural gas act you still have a pretty darn good business given the fact that there are fleets using natural gas. >> i'm glad you bring that up, jim, because since i was on here the last six months, our backlog and that is the stations that we now have in the pipeline to build has actually doubled. we have more national fleets now. earlier this week we announced the first -- the southwest corridor for ellen g trucks and that is stations in l.a. and bakersfield and down to the mexican border and out to arizona and in the next couple of months you'll be driving an lng truck from l.a. from the
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ports to phoenix and up to las vegas and utah. so, you know, regardless of the -- of the nat gas act, the business is growing. it's growing here in the country and growing all around the world, and as we know, there's so much natural gas here that the nat gas spurs the whole thing along faster. >> i think it was interesting. yesterday i was reading the canadian papers, rig zone.com, a very good site on oil, the energy board has decided to shift and no more will import lng and it will become export because there's so much in that country than ours. i think you also have to explain to viewers that what this would mean for truck pollution and how much it would be cut, not just energy independence, but truck pollution if we went lng for trucks around the country? >> it's a good point. i mean, natural gas in a heavy-duty truck. even diesel truck rs gotten cleaner. we're still 50% clean or knox,
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and we're 26% cleaner in carbon. so one of the points that we made to senators yesterday and the day before is, you know, one of the best things you can do for carbon is to replace diesel in the 8 million trucks in america and go with our own domestic natural gas fuel. so pollution's a winner and -- and the truckers save $1 a gallon. it's cheaper. >> one last quick thought. if we convert to trucks with a credit, they actually pretty much break even and the big trucking lines that go for this, right? >> absolutely. they get about a six to eight-month payback on the incremental. that incremental cost on a heavy-duty truck will come down as we get the numbers up and then they'll save anywhere between 10 and $20,000 on fuel. clne, sounds like all systems go. i appreciate it. >> don't be nervous. we'll get this thing done and in the meantime we're still growing. >> tell boone i said hi. >> clean energy fuels is a speculative stock, but can you
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imagine what would happen if they get the nat gas act through? the stock will go up at least 25%. "mad money high noon" will be right back with the ceo of macy's. coming up on "high noon" retail returns, this stock has been red hot and will it dress the sector with success or leave it hanging by a thread. cramer's exclusive with macy's ceo terry lundgren and later the final four. cramer tells you what you should be watching in the final hours of trading all coming up on "mad money high noon."
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the health care summit is still going on and john harwood will be bringing us anything we need to know on that. meantime we have to check in again on the market. before we get to macy's ceo, and that's what kwlou do when the market is down this badly. clean energy, that was our show. good. apple is still below 300. that's crucial. the oil business is down two bucks today so the whole group will go down. hewlett-packard is holding above where it was when it reported the great quarter. i just saw kohl's go by and snur enough, let's talk to macy's.
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macy's is the largest national department chain by revenue and a total household name so when it reports a much better than expected quarter, much better than expected as fares i'm concerned, we feel better about the consumer. when the ceo of macy's says he see s little meaningful improvement in the macro economic conditions. can it keep it up in an environment when everything is trading down? the ceo of macy's can help us take the pulse of the consumer. terry, welcome back to "mad money." thanks, jim. glad to be back with you. >> thank you for delivering on us. we were 16 when we talked last and i said it would be good after listening to you. you hit it out of the park? >> you tuesday it would be close to 20 as i recall. >> we hit it yesterday. >> congratulations. one of the things we have to talk about is this is not the same macy's. in the old days if i saw high jobs claims or worry about unemployment i would say we have to trim or sell macy's, but you
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have so many positive things going on internally at macy's that you're more immune thaz than you used to be. can you talk about the big changes you're putting through. >> think you know better than most people because you followed our stock and you recommended our stock and you've been right. i appreciate that, but we're a totally different company. when you think about it, just three years ago we could not even advertise on the macy's thanksgiving day parade because we weren't a national company. we just changed the names just three and a half years ago and then came after that all of the market marketing and then we wanted to make sure that what we did we had this great brand recognition, but it was so important for us to make sure we didn't lose the local execution and the relevance to the local consumer living in all of these cities across the country where we have over 800 stores. so we put in my new my macy's structure and that's what's working for us. >> want people to understand that you have a huge percentage of stores in california. you've got a gigantic percentage
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in the midwest. when i go to my macy's how does it feel differently from geography to geography and from culture to culture? >> very much so. first of all, the culture part is all -- we're still working through all of that and to me that's very exciting because it's all brand new. the new team i brought to new york to have one central merchandising organization and it used to be all over the country, as you remember. >> right. >> but i have these 69 district teams with 18 to 20 people in each city, 69 cities across the country that are giving us all of this local feedback and that's really important that we blend this culture together to have more of a -- a system that is a pull system where we're pulling the information and pulling the ideas from the consumer directly as opposed to pushing it from a central unit. so that culture shift is happening and it's actually very, very exciting, but as far as the product is concerned it's quite different. it's quite different from store to store, and we just really
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started getting the results of that just in the fourth quarter and ten out of the ten of the stores that performed best in the country were the early pilot divisions, the ones we started with and the districts we started with initially. they were the best performing. so there's a direct line to that -- this process of my macy's we've created to better results. >> i know that on the conference call, i read the good stuff and listened to the good stuff and sure enough you talk about the consumer and the uncertainty of the consumer. can you explain where you feel where the consumer is right now because i don't think anyone else would have ad as good a pulse on the consumer as the guy that runs macy's. >> washington has been asking us about this subject, too, and i'm certainly still worried about the consumer with unemployment at 9.7 or 10% unemployment, that's still a huge number that makes me concerned. with credit being tightened the way it has been, it's almost like a -- this is almost like a
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mixed signal, i think, coming from washington to the banks, get rid of your risk and cut the risk portfolios and part of that is the risk that they have with consumer credit, so they're cutting the credit for consumers and that's not what washington wants. >> so all of these unintended consequences have to be understood and i think they're listening and i am trying to communicate the very issues you're bring up. >> the credit card delinquencies weren't bad, were they? >> no, they're not bad. they're not as good as they were historically because they've grown and they're under control and it's not a really huge problem. 48% of our business at bloomingdales and macy's is done on our own proprietary visa -- macy's visa or bloomingdales visa card so we have a good handle on our customers. >> yourself was the first credit card i did have. i did pay and was never in default. good to talk to you, sir.
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>> you can catch more with terry on 11:00 p.m. eastern on "mad money" on cnbc. this one has been a moneymaker for us and you have to have more information if you want to stay owning it at 19. "mad money high noon" will be right back. coming up, the final four. cramer tells you what you should be watching in the final hours of trading. constantly taking the pulse of the market. you need someone who has the street cred, the track record and the market intuition to be your guide however the market moves. let jim cramer be your man on the street upon. . 
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